|
If the client has the funds (3%) & get approved using the DU or LP (both are running files against the FHA Scorecard system) FHA is a better deal up front to the client and you. Priced an Illinois loan last week where 5.875% priced at 101.2 for FHA and 100.45 for MCM.
Up front MIP is financed with FHA, so the that is not a concern to me. The MI is. FHA loans have a 360 payments of MIP at .5% (or 1.5% I forget) per year. MCM loans have standard MI which can be removed when the principal is under 80% LTV. After 24 on-time payments, a borrower can purchase a new appraisal and ask for the lender to waive the MI. Depending on the lender, they do this on the first request. Some lenders canrge a fee (approx. $250) because they will not waive until a review of the appraisal is done.
FHA is not much harder than the Conventional loans, but it is much more detailed work.
__________________
J  "We were born to succeed not fail"
|